Understanding the Historical Milestone: 40 Years Since Vietnam's First Barrel of Oil

On June 26, 2026, Vietnam's oil and gas industry commemorates a significant historical milestone - the 40th anniversary of the first crude oil extraction at the Bach Ho (White Tiger) oil field. This event marked the beginning of a new chapter for Vietnam's fledgling oil industry, establishing a solid foundation for the country's socio-economic development. On this occasion, PetroTimes had an in-depth conversation with Dr. Dinh Van Son - former Board Member of Petrovietnam and Permanent Member of the Editorial Board of the "History of Vietnam's Oil and Gas Industry" book series - to gain deeper insights into the importance of this milestone.

Historical Context Before First Oil Extraction

Before the first barrel of crude oil, Vietnam faced numerous challenges in ensuring energy security. The economy primarily relied on imported fuel, resulting in foreign exchange expenditure and dependence on other countries. In this context, the discovery and exploitation of oil and gas became a critical mission for the nation.

According to Dr. Dinh Van Son, Vietnam's oil and gas exploration began in the 1960s, but it wasn't until the 1970s, with international cooperation, that exploration activities truly intensified:

• 1975: After national reunification, oil and gas exploration received greater attention
• 1978: Discovery of the Bach Ho oil field in block 06-1 of the southern continental shelf
• 1979: Began trial exploitation
• June 26, 1986: Officially extracted the first barrel of crude oil at the Bach Ho field

The Significance of the First Barrel of Oil

The extraction of the first barrel of crude oil was not merely a technical achievement but held profound strategic significance for Vietnam. Dr. Dinh Van Son emphasized:

"The first barrel of oil was like a belief, a hope for a country that had just emerged from war. It proved that Vietnam had the energy potential to be self-sufficient and to develop. From that first barrel, we were able to build a comprehensive oil and gas industry, create important foreign exchange earnings, and promote the development of other industries."

Development of the Oil and Gas Industry After the Historical Milestone

From the first barrel of oil, Vietnam's oil and gas industry has achieved remarkable growth. Petrovietnam has become one of the country's leading economic corporations, with a system of subsidiary companies operating across the entire oil and gas value chain:

• Oil and gas exploration and production
• Oil and gas processing and distribution
• Oil and gas construction and installation
• Oil and gas training and research
• Oil and gas services

According to Dr. Dinh Van Son, the oil and gas industry has made significant contributions to Vietnam's economic development:

"For many decades, oil and gas was one of the main export sectors, contributing significantly to the state budget. Especially during the early stages of the Đổi Mới (Renewal) process, oil and gas was an important source of foreign exchange that helped stabilize the macroeconomy. Today, although we have diversified revenue sources, oil and gas still maintains an important position in the national economic structure."

Challenges and Opportunities in the New Context

Forty years after the first barrel of oil, Vietnam's oil and gas industry faces numerous new challenges. Dr. Dinh Van Son analyzed:

"The world is transitioning to renewable energy and reducing dependence on fossil fuels. This is a major challenge but also an opportunity for Vietnam's oil and gas industry to transform. We need to leverage existing strengths to develop new energy sources such as natural gas, wind power, solar power... At the same time, we need to improve extraction efficiency, reduce emissions, and apply advanced technology."

The main challenges facing Vietnam's oil and gas industry:

• Domestic oil and gas resources are depleting
• Pressure to reduce emissions and global energy transition
• Intense international competition in attracting investment
• Requirements for high technology and environmental protection

Future Vision

Looking ahead, Dr. Dinh Van Son expressed optimism but also caution:

"Forty years is a long journey, but Vietnam's oil and gas industry still has many opportunities for development. We need to focus on improving extraction efficiency, developing new fields such as LNG, green hydrogen, and leveraging geopolitical position to become a regional energy center. At the same time, we need to train high-quality human resources, apply digital technology and digital transformation to enhance competitiveness."

Dr. Dinh Van Son also emphasized the importance of environmental protection and sustainable development:

"The future oil and gas industry must be a sustainable development sector, balancing economic and environmental factors. We need to minimize environmental impacts during extraction, while investing in clean technology and renewable energy. This is not only a requirement of the era but also the responsibility of today's generation for future generations."

Conclusion

The 40th anniversary of the first barrel of oil is an important historical milestone, marking the beginning of Vietnam's oil industry and opening a new chapter for the country's socio-economic development. From the initial difficult steps, the oil and gas industry has risen to become one of the pillars of the economy, making significant contributions to the nation's construction and defense.

Looking back on the 40-year journey, we take pride in the achievements made but also clearly recognize the challenges ahead. With the tradition of unity, creativity, and determination, Vietnam's oil and gas industry continues to affirm its position, contributing to the sustainable development of the country in the new context.